1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
stiks02 [169]
3 years ago
5

Exhibit 4.1 The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges

, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2018 Cash and securities $3,000 Accounts receivable 15,000 Inventories 18,000 Total current assets $36,000 Net plant and equipment $24,000 Total assets $60,000 Liabilities and Equity Accounts payable $18,630 Accruals 8,370 Notes payable 6,000 Total current liabilities $33,000 Long-term bonds $9,000 Total liabilities $42,000 Common stock $5,040 Retained earnings 12,960 Total common equity $18,000 Total liabilities and equity $60,000 Income Statement (Millions of $) 2018 Net sales $84,000 Operating costs except depreciation 78,120 Depreciation 1,680 Earnings before interest and taxes (EBIT) $4,200 Less interest 900 Earnings before taxes (EBT) $3,300 Taxes 1,320 Net income $1,980 Other data: Shares outstanding (millions) 500.00 Common dividends (millions of $) $693.00 Int rate on notes payable & L-T bonds 6% Federal plus state income tax rate 40% Year-end stock price $47.52 Refer to Exhibit 4.1. What is the firm's profit margin? Do not round your intermediate calculations.
Business
1 answer:
sladkih [1.3K]3 years ago
8 0

Answer:

The firm's profit margin is 0.02357

Explanation:

The formula to compute the firm's profit margin is shown below:

Profit margin = (Net income ÷ sales revenue)  

                     = ($1,980 ÷ $84,000)

                     = 0.02357

It shows a relationship between net income and net sales. The other information which is given in the question is not relevant. Hence, ignored it  

You might be interested in
In 2019, Vaughn sold 1000 units at $500 each, and earned net income of $40000. Variable expenses were $300 per unit, and fixed e
olga nikolaevna [1]

Answer:

Vaughn must sell  1588 Units in 2020 to maintain the same income level as 2019

Explanation:

Selling price for 2020 = 500 per unit

Variable cost for 2020 = 300 x 10% + 300

                                       = 300 x 0.1 + 300

                                          = 30 + 300

                                            = 330 per unit

Fixed cost for 2020 = 240000-10000

                                  = 230000

Required unit = (Fixed cost+Net income)/Contribution margin per unit

                     = (230000+40000) / (500-330)

                     = 270000 / 170

                     = 1588.24

Required unit = 1588 Units

3 0
3 years ago
Lumpkin Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purc
KATRIN_1 [288]

Answer:

<u>February.</u>

Desired ending inventory = 10% of March Cost of goods(COGS):

= 10% * 35,000

= $3,500

Inventory needed = COGS + ending inventory

= 32,000 + 3,500

= $35,500

Beginning inventory = January ending inventory = $3,200

Required Purchases = Inventory needed - Beginning inventory

= 35,500 - 3,200

= $32,300

<u>March</u>

Desired ending inventory = 10% of April COGS:

= 10% * 40,000

= $4,000

Inventory needed:

= 35,000 + 4,000

= $39,000

Beginning inventory = February ending inventory = $3,500

Required purchases:

= 39,000 - 3,500

= $35,500

8 0
2 years ago
Santana Company exchanged equipment used in its manufacturing operations plus $2,000 in cash for similar equipment used in the o
Ede4ka [16]

Solution :

We know that the exchange takes place when the FMV receive is equal to the FMV given up.

Where the FMV = fair market value

The commercial substance means the future cash flows exchange.

The non monetary exchange refers to the cash which is less than 25% of the fair value exchange.

The journal entries for the Santana Corp. when the exchange lack the commercial substance are reported as :

Transaction                                           Debit ($)                 Credit ($)

Asset(new)                                           11,000

Accumulated depreciation(old)          9,000

Asset (old)                                                                       28,000

Cash                                                                                 2000

The journal entries for Delaware Corp. when the exchange lacks the commercial substance.

Transaction                                           Debit ($)                 Credit ($)

Asset(new)                                            16,000  

Accumulated depreciation (old)          10,000

Loss                                                                                      2500

Assets (old)                                                                           28,000                                  

7 0
2 years ago
Javier is currently paying ​$1 comma 200 in interest on his credit cards annually.​ If, instead of paying​ interest, he saved th
Cloud [144]

Answer:

after 9 years:

FV $15,625.2437

in 14 years:

FV $31,223.0270

last, at the nineteenth year:

FV $55,222.1501

Explanation:

We have to solve for the annuity of 1,200 dollar with a yield of 9% at the proposed times:

C \times \frac{(1+r)^{time}-1 }{rate} = FV\\

C 1,200.00

time 9

rate 0.09

1200 \times \frac{(1+0.09)^{9} -1}{0.09} = FV\\

FV $15,625.2437

time = 14

1200 \times \frac{(1+0.09)^{14}-1 }{0.09} = FV\\

FV $31,223.0270

time = 19

1200 \times \frac{(1+0.09)^{19} -1}{0.09} = FV\\

FV $55,222.1501

8 0
3 years ago
OceanGate sells external hard drives for $260 each. Its total fixed costs are $30 million, and its variable costs per unit are $
Svetach [21]

Answer:

a. in order to calculate this we must assume that the economy entered a recession:

degree of operating leverage = [($20 - $70)/$70] / [($260 - $520)/$520] = -0.7143 / -0.5 = 1.43

b. $14 million

Explanation:

strong economy:

total sales $520 million

<u>variable costs $420 million</u>

gross profit $100 million

<u>fixed costs $30 million</u>

EBIT $70 million

<u>income taxes $21 million</u>

net income $49 million

weak economy:

total sales $260 million

<u>variable costs $210 million</u>

gross profit $50 million

<u>fixed costs $30 million</u>

EBIT $20 million

<u>income taxes $6 million</u>

net income $14 million

7 0
3 years ago
Other questions:
  • You transferred $6,456 from your checking account to your savings account. The balance in savings was $7,870 before the transfer
    13·2 answers
  • What percentage of data would you predict would be between 40 and 70 and what percentage would you predict would be more than 70
    9·2 answers
  • Suppose that demand for automobiles increases by 25% when consumers' incomes increase by 20%. what is the income elasticity of d
    9·1 answer
  • Organizations use ________ to identify where their process expectations differ from sap capabilities. select one:
    15·1 answer
  • Tax preparers who obtain written conflict of interest waivers from clients are required to retain the document for at least:____
    6·1 answer
  • 1. Net income was $60,100. 2. Equipment (cost $21,770 and accumulated depreciation $9,770) was sold for $11,770. 3. Depreciation
    14·1 answer
  • Scott is the district manager for sales for his company. On a regular basis he talks with his team members about their progress
    7·1 answer
  • Selected information from Illikon Corporation's accounting records and financial statements for 2021 is as follows ($ in million
    11·1 answer
  • 1) If you make superior returns by buying stocks after a 10% fall in price and selling stocks after a 10% rise, this is consiste
    5·1 answer
  • You recently purchased a stock that is expected to earn 12.6 percent in a booming economy, 8.9 percent in a normal economy and l
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!